NIH awards $129K for analytical lab instruments, highlighting a need for specialized equipment

Contract Overview

Contract Amount: $129,147 ($129.1K)

Contractor: Becton, Dickinson and Company

Awarding Agency: Department of Health and Human Services

Start Date: 2020-03-26

End Date: 2020-03-27

Contract Duration: 1 days

Daily Burn Rate: $129.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SOFTWARE UPDATE

Place of Performance

Location: FRANKLIN LAKES, BERGEN County, NEW JERSEY, 07417

State: New Jersey Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $129,146.96 to BECTON, DICKINSON AND COMPANY for work described as: SOFTWARE UPDATE Key points: 1. The contract value is relatively small, suggesting a focused need for specific analytical capabilities. 2. Becton, Dickinson and Company, a large established firm, secured this award. 3. The short duration of the contract (one day) indicates a specific, immediate requirement. 4. The award falls under the Analytical Laboratory Instrument Manufacturing NAICS code. 5. The contract was awarded via full and open competition, suggesting a competitive process. 6. The fixed-price nature of the contract shifts risk to the contractor.

Value Assessment

Rating: good

The contract value of approximately $129,147 is modest. Without specific details on the analytical laboratory instrument, direct comparison to similar contracts is challenging. However, the price appears reasonable for specialized laboratory equipment, especially considering it was awarded through full and open competition. The benchmark price of $129,147 suggests a well-defined scope for the required instrument.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a single award suggests that Becton, Dickinson and Company offered the most advantageous proposal based on the evaluation criteria. The competitive process likely contributed to achieving a fair market price for the analytical laboratory instrument.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment in essential laboratory equipment.

Public Impact

Researchers and scientists at the National Institutes of Health (NIH) are the primary beneficiaries, gaining access to necessary analytical instruments. The contract supports the advancement of scientific research and development within the healthcare sector. The geographic impact is localized to the NIH facilities where the instrument will be deployed. The contract does not appear to have significant direct workforce implications beyond the supplier's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The short contract duration might indicate a potential for recurring needs or a pilot program, requiring future monitoring.
Limited information on the specific instrument makes it difficult to assess long-term value or potential obsolescence.

Positive Signals

Awarded through full and open competition, suggesting a robust market for this type of equipment.
The use of a firm fixed-price contract provides cost certainty for the government.
Becton, Dickinson and Company is a reputable manufacturer in the medical technology space.

Sector Analysis

The Analytical Laboratory Instrument Manufacturing sector encompasses companies that produce a wide range of scientific instruments used for analysis and measurement. This contract, valued at approximately $129,147, falls within the typical range for specialized laboratory equipment. The market is characterized by innovation and high technical standards, with government agencies like NIH being significant purchasers to support research and public health initiatives.

Small Business Impact

This contract was awarded to Becton, Dickinson and Company, a large business. There is no indication of a small business set-aside. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data, but large prime contractors often engage small businesses for various components or services.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm fixed-price nature provides a degree of financial accountability. Transparency is facilitated by the public nature of federal contract awards. Further oversight would typically involve program managers ensuring the delivered instrument meets specifications and the Inspector General's office for any potential fraud, waste, or abuse.

Related Government Programs

NIH Research Grants
Medical Equipment Procurement
Analytical Instrument Services
Laboratory Supplies and Reagents

Risk Flags

Short Contract Duration
Limited Scope Definition

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $129,146.96 to BECTON, DICKINSON AND COMPANY. SOFTWARE UPDATE

Who is the contractor on this award?

The obligated recipient is BECTON, DICKINSON AND COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $129,146.96.

What is the period of performance?

Start: 2020-03-26. End: 2020-03-27.

What specific type of analytical laboratory instrument was procured under this contract?

The provided data indicates the procurement falls under NAICS code 334516 (Analytical Laboratory Instrument Manufacturing) and the description is 'SOFTWARE UPDATE'. However, the specific model or type of analytical laboratory instrument is not detailed. It is possible this award relates to software supporting existing analytical instruments, or a component thereof, rather than a new instrument purchase. Further investigation into the contract details or associated documentation would be required to identify the precise nature of the instrument or software update.

How does the award value of $129,147 compare to typical spending on analytical laboratory instruments by NIH?

The award value of $129,147 is relatively modest for major analytical laboratory instruments, which can range from tens of thousands to millions of dollars depending on complexity and capabilities. This specific award, described as a 'SOFTWARE UPDATE', suggests it might be for maintenance, upgrades, or licensing for existing equipment, or a smaller, specialized instrument. NIH's overall spending on laboratory equipment is substantial, encompassing a wide array of instruments for diverse research needs. Without knowing the specific instrument or software, a direct comparison of this single award's value to NIH's total spending is difficult, but it represents a small fraction of the agency's overall investment in research infrastructure.

What is the track record of Becton, Dickinson and Company with federal contracts, particularly with NIH?

Becton, Dickinson and Company (BD) is a well-established global medical technology company with a significant history of federal contracting. They have secured numerous contracts across various agencies, including the Department of Defense, Department of Veterans Affairs, and Health and Human Services (which includes NIH). Their contract history typically involves a range of medical supplies, diagnostic equipment, and laboratory instruments. While this specific $129,147 award for a software update is relatively small, BD's broader federal contracting record suggests a capacity to meet government requirements. A detailed analysis would involve reviewing their performance history on larger, more complex contracts to fully assess their track record.

What are the potential risks associated with a one-day contract duration?

A one-day contract duration, as seen in this award, is highly unusual for the procurement of physical goods or complex services. It typically signifies the completion of a specific, immediate task or the finalization of a very short-term agreement. Potential risks include: 1) Incomplete Scope: The task might have been underestimated, leading to follow-on actions or dissatisfaction. 2) Lack of Competition: Such short durations might deter some potential bidders who require more time for proposal preparation. 3) Administrative Overhead: The administrative effort to award and close out a contract, even for one day, can be disproportionate to the value. In this case, described as a 'SOFTWARE UPDATE', it might represent the final delivery or acceptance date of a previously negotiated item, or a very specific, time-bound update service.

How does the 'FULL AND OPEN COMPETITION' classification impact the value and quality of the procured item?

Classifying a contract as 'FULL AND OPEN COMPETITION' means that all responsible sources were permitted to submit a bid. This generally leads to several positive outcomes: 1) Price Discovery: A wider pool of bidders allows market forces to drive down prices, ensuring the government receives competitive pricing. 2) Innovation: Different vendors may propose unique solutions or approaches, potentially leading to higher quality or more innovative outcomes. 3) Best Value: The government can select the offer that provides the best overall value, considering factors beyond just price, such as technical merit, past performance, and delivery timelines. For this $129,147 award, full and open competition suggests that the selected price and the software update provided by Becton, Dickinson and Company were deemed the most advantageous among the available options.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Analytical Laboratory Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Becton, Dickinson and CO

Address: 2350 QUME DR, SAN JOSE, CA, 95131

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $129,147

Exercised Options: $129,147

Current Obligation: $129,147

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F195DA

IDV Type: FSS

Timeline